Calls to Action

2020-03-11 - 09:28

All participants in the audit and assurance ecosystem must act to improve the audit process, the skill-set and mind-set of accounting professionals, the governance activities of companies and firms, the regulations and standards that support entity reporting and auditor behavior, and how audit quality is assessed.

Right Process

1. Approach audits as a value-added process and not as a compliance exercise
2. Evolve new assurance services to meet the needs of stakeholders
3. Embrace the role of technology in audit processes and audit standards

Right People

1. Ensure diversity in hiring practices
2. Preserve the multidisciplinary business model while safeguarding auditor independence
3. Continue to focus on enhancing skills, competencies, and adherence to fundamental ethical principles

Right Governance

1. Appoint properly skilled and independent audit committees
2. Enhance transparency and communication from audit committees, firms, and PAOs

Right Regulation

1. Update audit standards and assurance offerings to keep pace with the needs of both less complex and highly complex entities
2. Adopt a prudential approach to regulation
3. Reform legal liability regimes to facilitate expansion of assurance offerings
4. Apply evidence-based analysis and consider local impacts when evaluating regulatory tools like Joint Audit

Right Measurement

1. Improve measurement and reporting of audit quality—by firms, PAOs, and regulators